2020 has zoomed by so quickly and it's time for me to give my predictions on the crypto markets in 2021. So here we go my predictions on what I think will take place next year:
1/ BTC will have a very strong year driven by institutional demand. We have broken past ATH so all eyes will be on log price chart with next line of $100k. More public listed companies will hoard >$100m BTC. One small central bank will start holding BTC. Bitcoin ETF will launch.
2/ ETH will break past its $1,500 ATH mainly driven by DeFi. Gas fees will skyrocket again and highlight scalability issues. Most of the year will be spent coordinating on a Layer 2 scalability solution. My bet will be on ZK Rollup gaining traction towards the end of the year.
3/ We will see existing DeFi apps launching on other Layer 1 platforms like Serum & Polkadot. Hard for me to imagine any other L1 platforms gaining a foothold. We will see a multi-chain Metamask-like wallet making it easier to connect to multiple blockchains.
4/ DeFi derivatives will become more popular and will be driven by the large number of long tail coins not traded by CEX. Futures, perpetual swaps, options pricing on DEX will become as competitive as its centralized operators.
5/ Prediction markets will take off. We saw this year during the US Presidential Election that there is strong demand for a robust prediction market. Legality is still a big issue. I'm expecting anonymous teams to launch on an IPFS/Arweave hosted portal with stablecoin betting.
6/ Algorithmic stablecoins farming will be the DeFi food farms of Q1 2021. Dozens more will launch and most will die leaving the earlier ones stronger. I'm expecting more innovation on the algorithmic stablecoins design space.
7/ NFT will continue to grow but I don't think it will take off like how DeFi did in 2020. I think there will still be couple more years of development before exploding. The path towards adoption will most likely be through a new game developer adopting NFT for in-game items.
8/ More M&A will take place amongst crypto companies and tokens. There will be a quick rush to IPO/SPAC after Coinbase. We will see token teams finally merging (for real!) combining their tokens to be stronger together via token swaps.
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Impressed with the transparency shown by the team and it's something that more teams should emulate. Particularly like the detailed list of Treasury and payments to contributors/grants.
2/ The report makes it easy to do research on projects.
Here's a short summary: Yearn made a total of $3.8m in net operating profits for the past 3 months ending Oct 2020. $2.5m were paid to stakers in governance contract.
Would have been good to see average staked amount.
3/ 95% of revenue came from yVault products of which yUSD is the most popular yVault generating 68% of vault revenue.
There is no mention of TVL in this report and I have to dig elsewhere to get this info. Would have been good for this info to be included.
1/ Our November monthly report is out again! 🎉
This time round, almost every chart is upward sloping and at ATH! 🚀 Amongst top 30 coins, market cap grew by 46%.
2/ Bitcoin achieved its ATH and had the highest month-on-month growth in 2020 with a 42% increase in November. BTC ended November up 173% since the start of the year.
3/ Ethereum had an even higher growth in 2020, closing November up 374% from the start of the year. 🔥
There were 3 months in 2020 where ETH went up more than 50% --> April (+54%), Jul (+53%), Nov (+59%).
I've been observing @barn_bridge token price since it started trading on Monday morning. The price seems to be going only up and at $185, it is nearly 140x seed round price of $1.33. I am fully anticipating the price to go down next week so do be careful. Thread below 👇
Let's be clear: I am interested in Barnbridge's fixed interest rate solution. Their method of splitting variable interest rates into junior/mid/senior tranche is innovative and I look forward to seeing this team launching their product. I wrote more here:
Their way of distributing $BOND via farming seems quite fair. I like that Pool 1 lasts for 25 weeks & Pool 2 lasts for 100 weeks. The long farming period allows people who may have missed the initial news to join the farming later. I am generally not a fan of short farming period
1/ The next wave of DeFi innovations will be very interesting. We are replicating the entire suite of traditional financial markets in crypto. On the lending side, we have crypto collateralized loans which are more efficient than any collateralized loans in traditional finance.
2/ Interest rates are now mostly variable per block and the next wave of innovations will be projects looking to provide solutions to have fixed i/r over time. @AaveAave have some fixed i/r options but we are starting to see other methods being implemented to have fixed rates.
3/ The solution could be i/r swaps or by classifying the cashflow into senior/mid/junior tranches. I read @barn_bridge whitepaper ytd and soon we will be seeing more teams come around with innovative solutions to carve up the variable i/r to fixed i/r. github.com/BarnBridge/Bar…